![]() Some customers have said they’ve had problems with the aligners, including teeth damage, and the company has faced lawsuits over allegations of misleading claims. Roughly a year ago, SmileDirectClub said it would lay off staff and stop service in several nations amid efforts to turn a profit. SmileDirectClub has made cutbacks and faced other difficulties in the past. ![]() The company then ships customized teeth aligners to the customer, with follow-up appointments done remotely. SmileDirectClub makes a 3-D image of a person’s teeth - either via a scan in-person or via a kit sent to them directly at home - before developing a plan to straighten them. The company said it expected full-year 2022 sales of $470 million to $472 million, with a net loss of $278 million to $286 million and a cash balance of $118 million to $119 million. That was also below FactSet estimates for $98.8 million. Management forecast an adjusted EBITDA loss of $5 million to $35 million for the year.įor the fourth quarter, SmileDirectClub said it expected $86 million to $88 million in sales. The company forecast full-year sales of $400 million to $450 million, below FactSet forecasts for $479.5 million. However, its sales forecasts for this year and the end of last year came up short of Wall Street’s expectations. SmileDirectClub stock jumped 12.6% after hours. The moves include $50 million to $55 million in cuts to general and administrative expenses and another $60 million to $65 million in cuts to marketing and selling costs.Įxecutives said the cuts would help put the company “on a path to positive cash flow in late 2023” and open up the “potential to drive positive adjusted EBITDA by Q3 2023.” EBITDA stands for earnings before interest, taxes, depreciation and amortization. Management for SmileDirectClub - a “tele-dentistry” service that sends customers customized teeth-alignment kits in the mail - said they expected the cost-cutting plans to save an extra $120 million to $140 million this year.
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